I'm using Sharepoint Foundation 2010. Alerts are working only if the users have permission level that has Delete Versions permission. I want users to be able to get alerts, but not delete past versions of a list item or document.

1 Answer
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They should be able to get alerts just fine without those two permission levels. What you should do is create a new permission level with the ability to manage and edit the document, but without the ability to delete.

Navigate to the site of the library at hand. If permissions are being inherited from a parent site, navigate there instead.